EVOLUTIONARY ASPECTS OF THE GEORGIAN BANKING SYSTEM

Tamar Atanelishvili, and Nodar Silagadze
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Tamar Atanelishvili,: Ivane Javakhishvili Tbilisi State University, Georgia
Nodar Silagadze: Ministry of Finance of Georgia

EcoForum, 2016, vol. 5, issue 2, 20

Abstract: Georgian monetary relations have a centuries-old history. Credit associations were first founded in 11-13th centuries. Network of credit institutions became larger in the 19th century – independent commercial banks were established in the second half of the 19th century. Central State Bank of Georgia was established in the Democratic Republic of Georgia in the beginning of the 20th century. At the same time, there were efforts to create independent two-level banking system, although those efforts failed due to forceful sovietization of Georgia. But still, independent banking system was founded in Georgia after the collapse of the former Soviet Union. This work examines afore-mentioned evolutionary processes and some of peculiarities of modern banking system. The research shows that modern Georgian banking system is growing fast but it contains signs of oligopoly which contradicts the interests of vast masses of population and entrepreneurial development, while stimulating retaining of high interest rates and devaluation of national currency.

Keywords: Democratic Republic of Georgia; Post-Soviet Economy; Banking System; Bank. (search for similar items in EconPapers)
Date: 2016
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Citations: View citations in EconPapers (4)

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Persistent link: https://EconPapers.repec.org/RePEc:scm:ecofrm:v:5:y:2016:i:2:p:20

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